LONDON SE5 - £4.5M
On behalf of an experienced, independent developer / contractor, Southern negotiated a bank loan at an interest margin of 2% for the purchase of a former school building and its conversion to 39 houses and flats. By carefully planning the cashflow and focusing on the value of the property with the benefit of a recently obtained Planning Permission, Southern achieved Senior Debt financing equal to 83% of cost without incurring the need or expense of mezzanine finance.

BIRMINGHAM - £2.86M
An acquisition and construction finance facility for the conversion of a furniture depository into 45 one and two bedroom flats being part of an ongoing programme on behalf of a quoted company client. Southern achieved a loan facility equal to 85% of total development cost on a limited recourse basis whereby the lender will receive a small profit share to reflect the gearing level. This and other similar projects are being dealt with by Southern on an ongoing basis and the arrangements have enabled the Developer to both maximise its return on capital and to commit to a significant development programme without dilution of its equity.

ROMFORD, ESSEX - £7.5M
A rolling project finance facility to convert two industrial buildings into over 100 apartments. A blended Senior Debt and Mezzanine Loan was negotiated and enabled the developer to obtain 95% funding from the bank and retain development control and 65% of the resulting profit. This loan was the fourth facility negotiated by the Development Finance Team for the developer.

LONDON W1 - £2.3M
Initially bank facilities have been put in place to assist with the purchase of two adjoining town houses previously let in rooms and flats pending obtaining vacant possession of all of the accommodation. Thereafter the properties will be converted into 9 self-contained luxury apartments and the development loan drawn down to fund the construction cost. By providing additional security the borrower has obtained finance of 100% of the purchase and development cost.

CRAWLEY, WEST SUSSEX - £3M
A Bridging Loan from Southern's sister company provided the borrower with adequate time for the site assembly and for planning permission to be granted and the S.106 Agreement to be signed. Thereafter the site was re-valued which enabled the bank to lend 90% of the land and development cost. A small shortfall of the developer's capital was funded in-house by Southern’s mezzanine finance arm.

NEWCASTLE - £7.75M
Project finance to convert an historic warehouse building into 54 apartments and 2 bars/restaurants. Following agreeing the purchase, the developer negotiated an improved planning permission, which enhanced the site value and so enabled the lender to provide 80% of land and development costs.